Problem $21-01$

HBM$,$ Inc has the following capital structure:

$\backslash$table$[[$Assets $$450,000,$Debt,$$202,500,],[,,$Preferred stock,$45,000],[,,$Common stock,$202,500]]$

The common stock is currently selling for $$13$ a share, pays a cash dividend of $$0\mathrm{.}90$ per share, and is growing annually at $8$ percent. The preferred stock pays a $$9$ cash dividend and currently sells for $$85$ a share. The debt pays interest of $8\mathrm{.}5$ percent annually, and the firm is in the $30$ percent marginal tax bracket.

a$.$ What is the after$-$tax cost of debt? Round your answer to two decimal places.

$\%$

b$.$ What is the cost of preferred stock? Round your answer to two decimal places.

$q,\%$

c$.$ What is the cost of common stock? Assume that the current $$0\mathrm{.}90$ dividend grows by $8$ percent during the year. Round your answer to two decimal places.

$\%$

d$.$ What is the firm's weighted$-$average cost of capital? Round your answer to two decimal places. $\%$